Financial Data and Key Metrics Changes - The company reported GAAP net income of $56.8 million, with net income attributable to StepStone Group Incorporated at $28.8 million [4] - Fee related earnings for the quarter were $37.8 million, adjusted net income was $27.1 million, and adjusted net income per share was $0.24, down from $44 million or $0.38 per share in the fourth quarter of the previous year [6][4] - The FRE margin for the quarter was 28%, with a full year margin of 31%, which is in line with expectations [6][17] Business Line Data and Key Metrics Changes - Fee related assets under management (AUM) grew by 14% year-over-year, with gross AUM additions of over $5 billion in the recent quarter [6] - The company generated $16 billion of gross AUM inflows over the last 12 months, with $6 billion from commingled funds and $10 billion from managed accounts [13] - The private wealth platform's fee earning AUM exceeded $1.5 billion at the end of the quarter, with strong investment performance from SPRIM and SPRING funds [13] Market Data and Key Metrics Changes - The company noted that venture capital activities, which account for 15% of fee earning AUM, were minimally impacted by the failure of Silicon Valley Bank [7] - The demand for liquidity in the venture ecosystem is increasing, particularly for secondary sales, driven by regional banking turmoil [8] - The company’s global office exposure in commercial real estate is only 10% of total real estate AUM, indicating a cautious approach to this sector [9] Company Strategy and Development Direction - The company aims to capitalize on structural tailwinds in private markets and specific growth drivers within its asset classes [7] - Strategies such as venture secondaries and growth equity are highlighted as particularly well-suited for the current market environment [8] - The company is focused on expanding its retail franchise and developing new products for institutional investors [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects of venture capital and growth equity despite near-term macro headwinds [7] - The company anticipates continued pressure on private real estate valuations but believes its high-quality exposure will create opportunities [10] - Management emphasized the importance of consistent investment and an experienced team to navigate market challenges [8] Other Important Information - The company declared a supplemental dividend of $0.25 per share, in addition to the normal quarterly dividend of $0.20 per share [14] - The net accrued performance fees stand at nearly $600 million, serving as a backlog for future distributions [14] Q&A Session Summary Question: Distribution build-out and international platforms - Management noted that distribution flows have been consistent, with a growing syndicate approved on over 150 platforms globally, and emphasized the ongoing build-out of dedicated European coverage [22][23] Question: Fund closes and expectations for June - The multi-strategy global venture capital fund and real estate secondaries fund had interim closings, with the latter currently at over $900 million in commitments [24] Question: Fiscal '24 investment priorities - Management highlighted the focus on supporting growth and profitability, expanding the retail franchise, and developing new products for institutional investors [25] Question: SMA contributions and trends - The company is seeing a combination of re-ups and new separate accounts driving AUM inflows, with continued activity expected in the year ahead [26] Question: LP attitudes towards venture capital - Management indicated that while existing portfolios face markdowns, there is growing excitement about new investment opportunities, particularly in secondaries and growth equity [31] Question: Secondary market opportunities - There is over a trillion dollars of unrealized net asset value in venture portfolios, leading to increased willingness to sell, particularly in the LP secondary market [33]

Financial Performance - Adjusted revenues for the quarter were $148.1 million, a decrease of 14% compared to $173.0 million in the same quarter of the previous year[48] - Management and advisory fees, net, increased by 21% to $128.8 million for the quarter and 36% to $364.6 million year-to-date[48, 44] - Fee-related earnings (FRE) increased by 16% to $42.7 million for the quarter and 37% to $118.4 million year-to-date[48] - Adjusted net income (ANI) decreased by 36% to $31.2 million for the quarter and 18% to $115.5 million year-to-date[48] - ANI per share decreased by 36% to $0.27 for the quarter and 18% to $1.01 year-to-date[48] Assets Under Management (AUM) and Advisement (AUA) - Total AUM reached $134.0 billion, a 6% increase compared to $127.0 billion in the same quarter of the previous year[48] - Fee-earning AUM (FEAUM) increased by 16% to $83.0 billion compared to $71.2 billion in the same quarter of the previous year[48] - Total capital responsibility, which includes AUM and AUA, reached $602 billion[110] - Advisory AUA was $468 billion[51] Capital Activity - The company raised $12.4 billion of new SMA capital over the last twelve months (LTM)[48] - $6.0 billion was raised for commingled funds over the LTM[48] - Undeployed fee-earning capital was $14.0 billion, a decrease of 19% compared to $17.3 billion in the same quarter of the previous year[48] Performance Fees - Gross realized performance fees decreased by 71% to $19.3 million for the quarter and 31% to $124.4 million year-to-date[74] - Net realized performance fees for the last twelve months were approximately $122 million to $123 million[135]

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $13.6 million, with a net loss attributable to StepStone Group, Inc. of $6.9 million [32] - Fee-related earnings were $39.0 million, and adjusted net income was $31.2 million, translating to adjusted net income per share of $0.27, down from $0.42 per share in the same quarter last year [33][68] - The blended management fee rate increased to 54 basis points, attributed to a shift towards comingled funds [7] Business Line Data and Key Metrics Changes - Fee-earning assets grew by $3 billion for the quarter, driven by healthy deployment across several SMAs and activations of the PE secondaries fund [6] - The company generated over $4 per share in management and advisory fees over the last 12 months, representing an annual growth rate of 25% since 2018 [7] - The venture capital secondaries market is becoming more active, with over $1 trillion of unrealized venture assets anticipated to spur deal flow [70] Market Data and Key Metrics Changes - Industry-wide deal activity in secondaries topped $100 billion in 2022, trailing only the record volumes from 2021 [3] - The company has seen a significant interest in secondaries across various asset classes, with a notable shift in allocations among LPs [25][34] - The company finished the quarter with $134 billion of assets under management and $83 billion of fee-earning assets [68] Company Strategy and Development Direction - The company is focusing on expanding its private wealth platform and has launched offshore parallel and feeder funds in Europe and Australia [79] - There is an emphasis on the secondaries market as a critical area for growth, particularly in infrastructure and real estate [78] - The company aims to maintain a disciplined approach to capital distribution, aligning it with its business model [80] Management's Comments on Operating Environment and Future Outlook - Management noted that the current environment presents opportunities for selective investments, particularly in down markets [111] - There is a recognition of the need for LPs to rebalance their portfolios, leading to increased utilization of the secondary market [34] - Management expressed optimism about the venture capital sector, highlighting its resilience and potential for growth despite current market volatility [35] Other Important Information - The company anticipates a step-up in G&A expenses next quarter due to increased headcount and incentive payments [8] - Gross accrued carry finished the quarter at approximately $1.1 billion, reflecting a decrease due to reduced underlying valuations [9] - The company has declared an aggregate of $0.60 per share in dividends for the first three quarters of fiscal 2023, representing nearly 100% of fee-related earnings available to common shareholders [80] Q&A Session Summary Question: What is driving the elevated distributions this quarter? - Management indicated that elevated distributions were primarily due to normal activities across various drivers, with a notable exception being the expiration of an account in the infrastructure business [84] Question: How do you see investors altering their asset allocation? - Management noted that sentiment among clients is balanced, with some decreasing allocations while others maintain or slightly increase them, emphasizing the importance of not missing out on vintage years [85] Question: What are the expectations for expanding the retail platform in Europe and Australia? - Management highlighted that the markets are structured differently, with a smaller number of players in Europe and Australia compared to the U.S., which may require a different approach [102]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________________ to ___________________________ Commission file number 001-39510 STEPSTONE GROUP INC. (Exact name of Registrant as specified in its charter) (S ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________________ to ___________________________ Commission file number 001-39510 STEPSTONE GROUP INC. (Exact name of Registrant as specified in its charter) ( ...

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $67.1 million for Q2 2023, with a net loss attributable to StepStone Group of $29.2 million [7] - Fee-related earnings reached $39 million, marking a 48% increase year-over-year, while adjusted net income was $37.3 million, down from $0.40 per share in the prior year quarter to $0.33 [11][12] - The company finished the quarter with $135 billion in assets under management (AUM) and $80 billion in fee-earning assets, reflecting a 20% growth in fee-earning AUM over the past year [14] Business Line Data and Key Metrics Changes - The retail segment saw strong inflows, raising approximately $180 million for the quarter into the SeaPrime product, which now has over $850 million in AUM and an annualized return of 33% [17] - The company activated several funds post-quarter, including a PE secondaries fund and a multi-strategy global venture capital fund, which are expected to contribute approximately $2 billion to fee-earning assets in the next quarter [22] Market Data and Key Metrics Changes - The company experienced a $500 million drag on fee-earning assets due to currency movements, primarily from the strengthening of the U.S. dollar [23] - The company reported $19 billion in gross AUM inflows over the last 12 months, with over $7 billion from commingled funds and over $11 billion from separately managed accounts [21] Company Strategy and Development Direction - The company aims to make private markets accessible to individual investors, rebranding Conversus as StepStone Private Wealth and expanding its retail product offerings [17][26] - The management emphasized the importance of manager selection and asset allocation in the current market environment, positioning StepStone to help clients navigate these challenges [15] Management's Comments on Operating Environment and Future Outlook - Management noted that while clients are cautious, they are still looking for compelling opportunities in private markets, indicating a resilient demand despite market volatility [15] - The company expects to grow its quarterly dividend in line with fee-related earnings and plans to introduce a supplemental annual dividend funded by performance-related earnings [34][35] Other Important Information - The company reported a FRE margin of 33% for the quarter, up approximately 100 basis points year-over-year, indicating strong profitability [37] - The gross accrued carry finished the quarter at approximately $1.2 billion, reflecting a decrease due to reduced underlying valuations [42] Q&A Session Summary Question: Update on FRE margin expectations - Management indicated that the FRE margin is tracking ahead of expectations, maintaining a medium-term outlook in the mid-30s range [46] Question: Retail flows and investor hesitancy - Management noted that retail flows have increased due to expanded distribution and strong product reception, despite market volatility [48] Question: Fundraising and LP capacity - Management acknowledged that many LPs have spent their 2022 budgets early, but they expect commitments to increase in early 2023 as budgets free up [53][55] Question: Competitive environment for retail products - Management highlighted the differentiated nature of their retail products, emphasizing their multi-asset class approach and accredited eligibility [56][58] Question: Impact of Conversus transition on adjusted income - Management clarified that the distribution business has not been profitable yet, but they expect to provide updates on flows and AUM as they progress [69] Question: Liquidity solutions and secondary market activity - Management noted an increase in LP interest in the secondary market as a solution to over-allocations, with a growing pipeline of LP-led secondary transactions [95] Question: Re-up rates and new customer activity - Management reported strong re-up rates, particularly on separate accounts, and noted good progress with new clients despite some delays in closing [102][104]

StepStone Group Inc. (NASDAQ:STEP) Q1 2023 Earnings Conference Call August 4, 2022 5:00 PM ET Company Participants Seth Weiss - Head, Investor Relations Scott Hart - Chief Executive Officer Mike McCabe - Head, Strategy Johnny Randel - Chief Financial Officer Conference Call Participants Michael Cyprys - Morgan Stanley Ken Worthington - JPMorgan Alex Blostein - Goldman Sachs Adam Beatty - UBS Operator Welcome to the StepStone Fiscal First Quarter 2023 Earnings Call. At this time, all participants will be in ...

First Quarter Fiscal Year 2023 Earnings Presentation AUGUST 4, 2022 Today's Presenters Scott Hart CEO Jason Ment President & Co-COO Mike McCabe Head of Strategy Johnny Randel Chief Financial Officer STEPSTONE GROUP 2 GAAP Consolidated Income Statements GAAP net income (loss) was $(21.5) million for the quarter. GAAP net income (loss) attributable to StepStone Group Inc. was $(11.0) million (or $(0.18) per share) for the quarter. | --- | --- | --- | --- | --- | --- | |---------------------------------------- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________________ to ___________________________ Commission file number 001-39510 STEPSTONE GROUP INC. (Exact name of Registrant as specified in its charter) (State ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended March 31, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________________ to ___________________________ Commission file number 001-39510 STEPSTONE GROUP INC. (Exact name of Registrant as specified in its char ...